All Forum Posts by: Rod Hanks

Just a builders risk policy if you are doing an extensive rehab on the property and then a landlord dwelling policy when the property is rented. If the property does not require an extensive rehab and just needs cosmetic repairs then a standard landlord dwelling policy in most cases depending on the carrier.

 You are right 100% Owen, the landlord will be listed as additional interested party NOT additional insured.

@George Daly

Correct! As long as you have the insurance liability, property and flood if you are in a flood plain. But weigh the costs of insurance and taxes against the cash flow and make your decision accordingly.

Yes, had to go in more detail with my answer. $5400 comes with too much risk and wear and tear on the property. 

Based on your description, Party 1 seems like the safer choice. They have strong financial stability, excellent credit, and are experienced homeowners. This likely means fewer issues with payments and property upkeep.

Party 2 offers higher rent but comes with more risk. Their income is only 3X rent, they lack credit history, and the household is much larger, which could result in more wear and tear. While the co-signers add some security, the family’s newness to the U.S. and uncertain job situation make them a higher risk overall.

For a smoother, less risky rental experience,Party 1 is the better choice.

Sounds like great tenants. Credit score shouldn't be the primary driver of tenant approval, because if they could qualify for a mortgage they probably wouldn't be renters. I weigh more on making 3x rent and having great rental history of on time payments with no evictions, no lease violations or violent criminal history. I use National Tenant Network to run a tenant score and recommendation.

Congratulations on the flip! Solid ROI. Great work and valuable lessons learned!

Look at insurance and tax costs, those two items are the biggest killer of cash flow. However, you want to be in the path of growth because appreciation will make you wealthy. Specifically, Texas has some of the highest insurance and property taxes in the nation, but the appreciation makes up for those high costs in the long run.

It’s a good idea to have the insurance policy include both the tenant’s name and yours as additional insured. This ensures that any payout for damage or liability can be processed more smoothly, and it can help protect your interests if something happens on the property.

However, tenant insurance is typically intended to cover personal property and liability for the tenant, not the building itself. For full protection, your mortgage company will likely still require you to carry a landlord or dwelling policy. These policies cover the structure and additional liabilities related to your property that the tenant’s insurance doesn’t.

@Ana Escudero 

Property insurance renewals have been challenging the past few years, but there’s some stability with carriers heading into 2025. While rates may not decrease, the significant double-digit increases should level off. With property insurers’ profitability and trade combined ratios improving, we can expect some relief soon. Feel free to reach out—I’d be happy to assist!